Cramer Buy Recommendation CIT Goes Bankrupt
When will the SEC start regulating game shows masquerading as investment advisory? This weekend, CIT Group (NYSE:CIT) filed Chapter 11. Merely four weeks ago, Mad Money host and TheStreet.com (NASDAQ: TSCM) founder Jim Cramer said he would buy CIT (“Citi and CIT are Primed for Upside”). This type of incredibly speculative advice is as radioactive to the general investing public as a post nuclear explosion site:
As you can see in the chart above, Cramer recommended to buy CIT at the exact top. Thus, if “In Cramer You Trust” (like the CNBC commercials tell you to do), you are probably going to have lost 90+% of your investment by the open on Monday.
When Jim reads this he will probably email me again and ask me to remove the post and apologize to him. I suggest his remaining viewers email him and ask him to remove his stock picks from Mad Money and TheStreet.com as well as apologize. If Cramer was an honest guy and didn’t pathologically believe his own spin, he would add himself to his Wall of Shame. Unfortunately, if you now attempt to manifest the mission of his new book “Getting Back to Even”, you need to find multiple investments in which you can double your money. Vegas, anyone?
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